A new market structure bill for cryptocurrency regulations in the US Senate was shared with industry representatives for the first time. Initial reviews indicate that the scope remains narrow and unclear, especially in the articles related to stablecoin yield programs. The texts updated in the relevant committee during the Parliament leg of the bill were introduced to the cryptocurrency industry in a preliminary meeting held behind closed doors in Washington.
Strict Limits Are Being Placed on Stablecoin Returns
The new bill, announced by Senators Angela Alsobrooks and Thom Tillis, aims to ban users from earning direct returns by holding stablecoins in their wallets. In addition, it is aimed to prevent these returns from being created in a way that is similar to bank deposits. According to industry representatives, only rewards based on users’ various activities were allowed in a limited way, while how these activities would be defined was left ambiguous.
It is known that the banking industry has long insisted that rewards from stable crypto assets do not resemble bank interest. Bankers argue that such returns could harm the banking sector and disrupt the credit mechanism. For this reason, with the compromise, reward programs were only left open for certain transactions of users, while direct income generation from the asset held in balance was prevented.
DeFi and Conflicts of Interest are Discussed in the Next Step
Last year, a similar regulation was passed by the House of Representatives and then separately evaluated in the Senate Agriculture Committee. Now, if approval is received from the Senate Banking Committee, the process will be completed for the final version of the bill to be prepared and voted on in the General Assembly.
So far, lobbying on stablecoin returns has made it difficult for the legislation to advance. However, this is not the only agenda item that the crypto industry is waiting for. Control of the decentralized finance (DeFi) ecosystem continues to be one of the controversial topics for the sector and politicians. It is reported that Democrats, in particular, demand additional protections within the scope of the fight against money laundering and illegal finance.
Democrats are also pushing for a provision that would restrict top government officials from making personal gains through the crypto industry. It is stated that this regulation specifically targets US President Donald Trump.
The crypto industry made a significant gain last year with the enactment of the GENIUS Act, which was considered the first major regulation in the USA and determined the framework of the stablecoin market. However, the GENIUS Act was seen as the first step towards comprehensive regulations. The Clarity Act, the outcome of which is awaited, aims to establish a clearer and more comprehensive legal infrastructure.
If the bill receives final approval, regulatory uncertainty regarding the crypto market in the US will be eliminated. Thus, it is expected that more institutional investors and developers will turn to this area.
